As the name monopolistic competition implies, a firm's decisions in this setting will in certain ways resemble _______ and in other ways resemble _______.
A) monopoly; imperfect competition
B) monopoly; perfect competition
C) imperfect competition; perfect competition
D) imperfect competition; oligopoly

Question

Quizplus · Accepted Answer

Monopolistic competition has characteristics of both monopoly (due to product differentiation, giving firms some price-setting power) and perfect competition (due to many firms in the market, ensuring no single firm can control the market price).

As the Name Monopolistic Competition Implies, a Firm's Decisions in This